Delphi: We prefer Platinum

Delphi Corp. wants to sell its steering business to Steering Solutions.

The Troy-based auto parts maker filed a response Wednesday in U.S. Bankruptcy Court to a motion by Steering Holding, an affiliate of Sun Capital Partners Inc., objecting to Delphi naming Steering Solutions Corp. as the lead bidder in the sale of the Buena Vista Township-headquartered Delphi Steering.

Delphi maintained its support for Steering Solutions, a wholly owned entity of the Los Angeles-based private investment company Platinum Equity. Delphi, which filed for bankruptcy in October 2005, last week entered into a master sale and purchase agreement with Steering Solutions.

Sun Capital is a Boca Raton, Fla.-based private investment company.

A judge today will decide during a bidding procedures hearing who will become the lead bidder.

The court also will establish a timeline and rules to auction the business. The auction is open to any company for bidding.

Delphi officials did not release a statement on the court filing.

Union leaders do not have an official position on either company, said Mike Hanley, president of United Auto Workers Local 699, which represents about 2,600 hourly workers at Delphi Steering.

"We've studied Platinum Equity, and the international has been talking with Platinum Equity since before the beginning of the year," Hanley said. "But Sun Capital, we don't know anything about.

"We don't want anything to delay the proceedings. We want to be owned by somebody who wants to be in the steering business."

In its proposal, Sun Capital said becoming lead bidder would not disrupt the process of the auction and sale.

Delphi said it believes that it would "ultimately affect ... the timing of the sale, the ... value of Steering Business and the likelihood of successfully closing the transaction."

Delphi said Sun Capital does not yet have a supply agreement with General Motors Corp. Platinum Equity does.

Sun Capital has said companies it owns already supply GM.

Sun Capital Vice President Richard Hurwitz declined to talk about the deal.

Platinum Equity Senior Vice President Dan Krasner filed a motion arguing for his company to maintain its position as lead bidder.

"Platinum has worked hard to obtain the support of all constituents in this transaction, including Delphi, the Steering Business management team, the UAW and GM," it states.

Platinum Equity "has fully informed and negotiated transaction and supply agreements with Delphi and GM, and has a complete understanding of the Steering Business and what is required to make it a successful stand-alone business going forward," the filing says.